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An Era Of Stability And Promise Notes

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An Era of Stability and Promise: 1923-1929

Ramsay MacDonald's main aims in foreign policy were the improvement of relations with the USSR and France to help Europe remain politically stable. In spring 1924 Poincaré was replaced by Herriot as French Prime Minister.

The Dawes Plan:
- American banker Charles Dawes came to Europe to mediate a reparations settlement after the Ruhr Crisis.
- From the recommendations of the Dawes Report, the Dawes Plan was announced in August 1924. It hoped to revive the German economy.
- The USA granted a large loan to Germany to assist its recovery and reparations payments were rescheduled, rising from 1 to 2.5 billion marks per year over the next five years.
- In return France was to exit the Ruhr by August 1925 and promise that no such episode would happen again. This meant that France foreign policy was heavily circumscribed by bankers in London and Washington.
- The plan proved successful once implemented. The German economy recovered, the currency stabilised and unemployment fell. The Ruhr was evacuated on schedule. The Geneva Protocol:
- In 1922 a Draft Treaty of Mutual Guarantee had been circulated by the League of Nations, specifying member state obligations if any state were the victim of aggression. The idea was initially rejected due to opposition from the armed forces and dominions, but resurfaced after the Dawes Plan.
- MacDonald was aware French security had still not been guaranteed and saw such a policy as an ideal solution. He and Herriot entertained the idea of a pact which aimed to close a loophole in the League Covenant, allowing nations to go to war without penalty in negotiations failed.
- The Geneva Protocol required nations to submit disputes for arbitration, while ensuring members co-operated with aggression victims to the best of their ability. British Politics:
- After initiating a commercial agreement and general treaty with the Soviets, MacDonald's Labour government fell after losing vote of confidence.
- It came after a turbulent period in Anglo-Soviet relations. The Labour government were accused of meddling in the justice system after charges against J.R Campbell were withdrawn despite Campbell urging British workers not to take up arms against fellow workers in other countries.
- On 25th October 1924, four days before the election, a letter allegedly from the Comintern leader to the British Communist Party was published in the Daily Mail. It stated ways of stirring up the British working class to encourage

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